FAC Explorer

Audit 379588

FY End
2025-06-30
Total Expended
$26.21M
Findings
4
Programs
7
Organization: Hanover College (IN)
Year: 2025 Accepted: 2026-01-06
Auditor: FORVIS MAZARS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1167963 2025-001 Material Weakness Yes N
1167964 2025-001 Material Weakness Yes N
1167965 2025-001 Material Weakness Yes N
1167966 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
84.268 FEDERAL DIRECT STUDENT LOANS $19.27M Yes 1
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $4.04M Yes 0
84.063 FEDERAL PELL GRANT PROGRAM $2.03M Yes 1
21.027 COVID-19 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $515,180 Yes 0
84.033 FEDERAL WORK-STUDY PROGRAM $258,884 Yes 1
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $73,721 Yes 1
45.162 PROMOTION OF THE HUMANITIES TEACHING AND LEARNING RESOURCES AND CURRICULUM DEVELOPMENT $21,440 Yes 0

Contacts

Name Title Type
KFNNJBWTT9Z3 Heather Chism Auditee
8128667089 Rick Wittgren Auditor
No contacts on file

Notes to SEFA

The College also participates in the Federal Direct Loan Program. The dollar amounts are listed in the schedule of federal awards although the College is not the recipient of the funds. Such programs are considered a component of the student financial assistance cluster. New loans processed for students during the year ended June 30, 2025 were as follows: Subsidized $1,578,011, Unsubsidized $6,222,885, and PLUS $11,466,790. The College participates in the Community Facilities Loans and Grants program. At June 30, 2025, the outstanding balance of the College's loan through this program was $3,982,505.

Finding Details

Finding 2025-001
Federal Program: Student Financial Assistance Cluster Federal Agency: U.S. Department of Education Federal Assistance Listing Title and Number: Federal Direct Loan Program 84.268, Federal Pell Grant Program 84.063, Federal Supplemental Educational Opportunities Grant 84.007, Federal Work Study 84.033 Award Year: July 1, 2024 - June 30, 2025 Criteria or Specific Requirement: Special Tests and Provisions - Return of Title IV Funds Condition: The College did not disburse funds required to be returned to the Department of Education within 45 days. (Material Weakness in Internal Control Over Compliance and Other Instance of Noncompliance) Questioned Costs: None noted Context: During testing for compliance with Special Test and Provisions - Return of Title IV Funds, 1 out of 6 selections resulted in errors. From a population of 51 students, 6 were selected for testing. Error related to the initial return of funds calculation identifying the amount to be returned being completed incorrectly for a graduate student. The error was identified by the College and the additional amount to be returned was processed, however, this occurred more than 45 days after the graduate student withdrew from the College. Effect: Return of Title IV Funds was not completed within the required 45 days. Cause: The Office of Graduate Studies completed the first Return of Title IV Funds (R2T4) process. Once the Office of Student Financial Services began to manage all financial aid processing (including graduate studies), errors in the calculations were discovered and the Office of Student Financial Services submitted the corrected amount to the Department of Education. Unfortunately, the 45 required day window had lapsed. Repeat Finding: No Recommendation: We recommend the College revisit controls over this compliance requirement to ensure appropriate documentation is obtained and maintained within the files and appropriate review of return of funds calculations is being completed. Views of Responsible Officials and Planned Corrective Action: See corrective action plan prepared by management attached.